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USDC certainly claims to be audited, by a big US accounting firm no less. Is there some nuance I’m missing?
by thebean11 5y ago
USDC certainly claims to be audited, by a big US accounting firm no less. Is there some nuance I’m missing?
- airstrike 5y agoYou may be equating "audited financials" with the mountain of regulations banks need to comply with that go way beyond their financial performance.
- dmitriid 5y agoThe nuance is "claims". It's never been properly audited.
- ac29 5y agoIf they've been audited, they've never released those audits.
- graeme 5y ago> Is there some nuance I’m missing? Yup. They’ve had attestations. In those, an auditor just looks at an account at a moment in time. So you could, for example: 1. Get a loan 2. Put it in the reserve account 3. Ask accountant to verify the amount 4. Accountant attests to seeing money in the reserve account 5. Afterwards, move money out to pay off the loans Sound crazy? Tether actually did this, it only came out in the NYAG settlement. USDC uses a US accountant, but nothing in the procedures they use would prevent such a scenario. The auditor merely relies on management assertions in an attestation.